Short Title

Short title

1. This Act may be cited as the Members of Parliament Retiring Allowances Act.

R.S., c. M-10, s. 1.

Interpretation

Definitions

2. (1) In Parts I to V,

“annual allowance”

« indemnité annuelle »

“annual allowance” means an annual allowance payable to a member pursuant to section 62 of the Parliament of Canada Act or payable to a member pursuant to an appropriation Act as Deputy Chairman or Assistant Deputy Chairman of a committee;

“average annual sessional indemnity”

« moyenne annuelle de l’indemnité de session »

“average annual sessional indemnity”, with respect to any member, means the average annual sessional indemnity received as a member during any five year period of pensionable service selected by or on behalf of the member, or during any period so selected consisting of consecutive periods of pensionable service totalling five years;

“child”

« enfant »

“child” means a child or stepchild of — or an individual adopted either legally or in fact by — a member or former member who

(a) is less than eighteen years of age, or

(b) is eighteen years of age or older but less than twenty-five years of age, and is in full-time attendance at a school or university within the meaning provided for that expression by the regulations, having been in such attendance substantially without interruption since the child reached eighteen years of age or the member or former member died, whichever occurred later;

“Compensation Arrangements Account”

« compte de convention »

“Compensation Arrangements Account” means the Members of Parliament Retirement Compensation Arrangements Account established by section 27;

“defined benefit limit”

« plafond des prestations déterminées »

“defined benefit limit” means

(a) in respect of a calendar year before 1995, $1,722.22, and

(b) in respect of the 1995 calendar year and any subsequent calendar year, the amount prescribed;

“earnings limit”

« gains maximums »

“earnings limit”, in relation to a member in respect of one or more sessions in any calendar year, means the amount in respect of which benefits may be accrued during that calendar year for the purposes of a registered pension plan within the meaning of the Income Tax Act, determined by dividing the defined benefit limit in respect of that calendar year by 0.02;

class="MarginalNote“former Act”

« version antérieure »

“former Act” means this Act as it read on December 31, 1991;

“joint and survivor benefit”

« pension de réversion »

“joint and survivor benefit”, in relation to a former member, means a benefit that is an annuity and that continues until the death of the former member or of the former member’s spouse, whichever occurs later;

“Retiring Allowances Account” means the Members of Parliament Retiring Allowances Account continued by section 3;

“salary”

« traitement »

“salary” means a salary payable to a member pursuant to section 4 of the Salaries Act or section 60 or 61 of the Parliament of Canada Act, or payable to a member pursuant to an appropriation Act as a minister of state or a minister without portfolio;

“session”

« session »

“session” means a session of Parliament;

“sessional indemnity”

« indemnité de session »

“sessional indemnity” means

(a) in relation to a period before October 8, 1970, the allowances payable to a member under section 55 and subsection 63(3) of the Parliament of Canada Act,

(b) in relation to a period after October 7, 1970 and before July 8, 1974,

(i) in the case of a member of the Senate, five sixths of the allowance payable to the member under section 55 of the Parliament of Canada Act, and

(ii) in the case of a member of the House of Commons, the allowanceayable to the member under section 55 of the Parliament of Canada Act, and

(c) in relation to a period after July 7, 1974, the allowance payable to a member under section 55 of the Parliament of Canada Act;

“survivor”

« survivant »

“survivor”, in relation to a member or former member, means

(a) a person who was married

(i) in the case of a member or former member, to the member or former member immediately before his or her death, and

(ii) in the case of a former member, to the former member immediately before the time when he or she ceased to be a member, or

(b) a person who establishes that the person was cohabiting in a relationship of a conjugal nature

(i) in the case of a member or former member, with the member or former member for at least one year immediately before his or her death, and

(ii) in the case of a former member, with the former member before he or she ceased to be a member.

Calculation of average annual sessional indemnity

(2) For the purposes of calculating the average annual sessional indemnity of a member, any period during which the member is, by virtue of paragraph 12(1)(b) or (c) or 34(1)(b), prohibited from contributing in respect of the sessional indemnity payable to the member is deemed to be a period of pensionable service to the credit of that member.

Application of Parts I to V to members of Senate

(3) For the purposes of Parts I to V, except section 58, a “member of the Senate” or a “Senator” means a person who was summoned to the Senate after June 1, 1965.

Ceasing to be member

(4) For the purposes of this Act,

(a) a person does not cease to be a member of the House of Commons by reason only of a dissolution of the House of Commons; and

(b) a person who, immediately before a dissolution of the House of Commons, was a member of that House ceases to be a member on the day on which the general election next following the dissolution is held, unless that person is

(i) summoned to the Senate before that general election, or

(ii) elected as a member at that general election.

When allowances payable

(5) For greater certainty, every allowance, other than a withdrawal allowance, payable to a person under this Act is an annuity that begins to be payable to the person immediately on that person becoming entitled to the allowance.

Election To Continue Or Come Under Act

Continuing under Act

2.1 (1) A member of the House of Commons in the thirty-fifth Parliament who is contributing under subsection 9(1) or (2), 11(1), 12(2), 31(1), (2) or (3), 33(1) or (2) or 34(2) or section 47 on the coming into force of this section may, within sixty days after the day on which this section comes into force, elect in accordance with subsection 56(2) to continue to contribute under all those provisions under which the member is contributing at the time of the election.

Coming under Act

(2) A person who, after the coming into force of this section, becomes a member of the House of Commons in the thirty-fifth Parliament may, within sixty days after the first day on which that House is sitting after that person becomes a member, elect in accordance with subsection 56(2) to contribute, from the day on which the person becomes a member, under such of subsections 9(1) and (2), 12(2), 31(1), (2) and (3) and 34(2) and section 47 as are otherwise applicable to the person.

Exception

(3) Subsection (2) does not apply to a person who was entitled to make an election under subsection (1) and did not do so.

Irrevocable

(4) An election under this section is irrevocable.

Deemed election

(5) For the purposes of this Act,

(a) a member who, being entitled to make an election under subsection (1), dies before doing so is deemed to have elected immediately before the death to continue to contribute under all those provisions under which the member was contributing at that time; and

(b) a person who, being entitled to make an election under subsection (2), dies before doing so is deemed to have elected immediately before the death to contribute under such of the provisions of this Act as would otherwise be applicable to the person.

1995, c. 30, s. 2.

Application of Act to members making election

2.2 This Act continues to apply to a member who makes an election under section 2.1.

1995, c. 30, s. 2.

Application of Act to members not making election

2.3 (1) Subject to this section and sections 2.4 and 2.5, this Act ceases to apply to a member who, being entitled to make an election under section 2.1, does not do so.

Withdrawal allowance

(2) There shall be paid to a member referred to in subsection (1) a withdrawal allowance, in a lump sum, equal to the aggregate of

(a) the total amount of the contributions that the member has paid under this Act and Parts I, III and IV of the former Act, and

(b) the interest on those contributions that the member has paid under section 11 or paragraph 33(1)(c) or (2)(d) of this Act or under section 23 of the former Act.

Reduction

(3) The withdrawal allowance payable to a member who was a member for six or more years before October 25, 1993 shall be reduced by the amount of the contributions, and the interest thereon, that the member has paid in respect of pensionable service as a member before that date.

Interest

(4) Interest shall be paid on the amount of the withdrawal allowance and shall be calculated in accordance with subsection 63(2) as if a reference to paragraphs (2)(a) and (b) were included in paragraph 63(2)(a) and as if the references in that subsection to “the year in which the person ceased to be a member” were references to “the year in which the allowance became payable”.

1995, c. 30, s. 2.

Application of Act to members not making election who become members again

2.4 (1) This Act recommences to apply to a member referred to in subsection 2.3(1) who ceases to be a member and subsequently becomes a member in the thirty-sixth or any subsequent Parliament.

(2)�(Repealed, 1998, c. 23, s. 9)

1995, c. 30, s. 2; 1998, c. 23, s. 9.

Application of Act to members not making election who were vested

2.5 (1) Section 11, subsection 12(3), sections 13, 16, 17, 19 to 26, 33, 35 to 37, 39 to 46 and 48 to 55, subsection 56(2) and sections 57 to 63 of this Act and section 23 of the former Act continue to apply, with such modifications as the circumstances require, to a member referred to in subsection 2.3(1) who was a member for six or more years before October 25, 1993.

Presumption

(2) For the purposes of applying the provisions referred to in subsection (1), the member is deemed to have received no sessional indemnity for any period after October 24, 1993.

1995, c. 30, s. 2.

Election to come under Act

2.6 (1) A member of the House of Commons who was entitled to make an election under section 2.1 and who did not do so may, within 90 days after the day this section comes into force, elect in accordance with subsection 56(2) to have this Act recommence to apply to the member.

Application

(2) Subsection (1) applies only in respect of members of the House of Commons who serve continuously in that capacity from the day this section comes into force until the day they make their election.

Irrevocable

(3) An election under subsection (1) is irrevocable.

Application of Act deemed to be continuous

(4) This Act is deemed to apply to a member of the House of Commons who makes an election under subsection (1) as if it had always applied to the member.

Repayment of withdrawal allowance and payment of contributions

(5) A member of the House of Commons who makes an election under subsection (1) shall, within 90 days after making the election, pay into the Consolidated Revenue Fund, in a lump sum, an amount equal to

(a) the withdrawal allowance paid to the member under subsection 2.3(2);

(b) any interest on the withdrawal allowance paid to the member under subsection 2.3(4); and

(c) the contributions that the member would have made had the Act not ceased to apply to the member.

Crediting to accounts

(6) The amount paid under subsection (5) shall be credited to the Retiring Allowances Account and the Compensation Arrangements Account in the appropriate amounts.

Deemed contributions

(7) The portion of the amount paid under subsection (5) in respect of the withdrawal allowance mentioned in paragraph (5)(a) and the contributions mentioned in paragraph (5)(c) are for all purposes deemed to be contributions made by the member.

Non-payment cancels election

(8) An election under subsection (1) is deemed not to have been made if the amount required to be paid under subsection (5) is not paid in the time provided, but subsection 57(2) applies if the member who made the election dies before the time expires.

1998, c. 23, s. 10.

Account Continued

Members of Parliament Retiring Allowances Account continued

3. (1) The Members of Parliament Retiring Allowances Account, established in the accounts of Canada by section 4 of the former Act, is hereby continued.

(2) On January 1, 1992 there shall be charged to the Retiring Allowances Account and credited to the Compensation Arrangements Account such portion of the balance to the credit of the Retiring Allowances Account on that day as may reasonably be estimated to be attributable to the aggregate of

(a) the contributions credited to the Retiring Allowances Account pursuant to paragraph 4(1)(a) of the former Act on account of contributions paid pursuant to section 18 of that Act,

(b) the amounts equal to those contributions credited to the Retiring Allowances Account pursuant to paragraph 5(a) of the former Act, and

(c) the interest credited pursuant to paragraph 5(c) of the former Act on such portion of the balance to the credit of the Retiring Allowances Account as may reasonably be estimated to be attributable to the amounts referred to in paragraphs (a) and (b).

R.S., 1985, c. M-5, s. 3; 1992, c. 46, s. 81.

Part I. Members Of Parliament Retiring Allowances

Interpretation

Credits to Account

4. (1) There shall be credited to the Retiring Allowances Account

(a) the contributions paid pursuant to subsections 9(1) and (2) and 11(1) and contributions made pursuant to subsections 21(7) and 22(3) of the former Act that are paid on or after January 1, 1992;

(b) the interest paid in accordance with subparagraphs 11(1)(a)(ii) and (b)(v) and (vi); and

(c) the amounts referred to in section 5.

Allowances paid out of C.R.F. and charged to Retiring Allowances Account

(2) All allowances and other benefits payable under this Part and all supplementary benefits payable in respect of those allowances or benefits under Part IV shall be paid out of the Consolidated Revenue Fund and charged to the Retiring Allowances Account.

R.S., 1985, c. M-5, s. 4; 1992, c. 46, s. 81.

Amounts credited to Account

5. (1) The following amounts are required, pursuant to paragraph 4(1)(c), to be credited to the Retiring Allowances Account in each fiscal year:

(a) in respect of every month, an amount equal to the total amount estimated by the Minister to be required to provide for the costs of all allowances, supplementary benefits and other benefits that have accrued in respect of that month and that will become chargeable against the Retiring Allowances Account; and

(b) an amount representing interest on the balance from time to time to the credit of the Retiring Allowances Account, calculated in accordance with the regulations.

Calculation of interest

(2) For the purpose of calculating the amount representing interest referred to in paragraph (1)(b), the amounts credited to the Retiring Allowances Account pursuant to paragraph 6(a) shall be deemed to have been so credited to that Account on December 31, 1991.

R.S., 1985, c. M-5, s. 5; 1992, c. 46, s. 81.

Amounts to be initially credited

6. There shall be charged to the Supplementary Retirement Benefits Account established pursuant to the Supplementary Retirement Benefits Act and credited to the Retiring Allowances Account

(a) on January 1, 1992, the amount by which

(i) the aggregate of

(A) all amounts credited to the Supplementary Retirement Benefits Account before that date pursuant to Part IV of the former Act, and

(B) the interest credited pursuant to section 9 of the Supplementary Retirement Benefits Act on such portion of the balance in the Supplementary Retirement Benefits Account as may be attributed to the amounts referred to in clause (A)

exceeds

(ii) the benefits and other amounts charged to the Supplementary Retirement Benefits Account in respect of former members, before that date, pursuant to section 8 of the Supplementary Retirement Benefits Act; and

(b) such interest as is credited pursuant to section 9 of the Supplementary Retirement Benefits Act, at any time on or after January 1, 1992, on such portion of the balance in the Supplementary Retirement Benefits Account as may be attributed to the amount referred to in paragraph (a).

R.S., 1985, c. M-5, s. 6; 1992, c. 46, s. 81.

Deficits for service before January 1, 1992 to be estimated

7. (1) The Minister shall estimate the total cost of all allowances and other benefits payable under this Part as of January 1, 1992.

Deficits for pensionable service before January 1, 1992 to be amortized

(2) There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of that Account at that time, meet the total cost estimated pursuant to subsection (1).

R.S., 1985, c. M-5, s. 7; 1992, c. 46, s. 81.

Amounts to be credited on basis of valuation report

8. Following the laying before Parliament pursuant to section 65 of any valuation report that relates to the Retiring Allowances Account, there shall be credited to that Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of that Account at that time, meet the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits.

R.S., 1985, c. M-5, s. 8; 1992, c. 46, s. 81.

Contributions

Contributions

9. (1) A member shall, by reservation from the sessional indemnity of the member, contribute to the Retiring Allowances Account four per cent of the amount payable to the member by way of that sessional indemnity.

Contributions

(1.1) Despite subsection 2.3(1), beginning on the date this subsection comes into force, a member who was entitled to elect under sections 2.1 and 2.6 and who did not elect shall, by reservation from the sessional indemnity of the member, contribute to the Retiring Allowances Account four per cent of the amount payable to the member by way of that sessional indemnity.

(1.2) This Act recommences to apply to a member referred to in subsection (1.1) as of the day on which this subsection comes into force and is deemed to apply to the member as if it had always applied to the member.

(2) A member who is in receipt of a salary or an annual allowance shall, unless the member elects in accordance with subsection 56(2) in respect of that salary or annual allowance

(a) not to contribute under this subsection and has at the same time elected not to contribute under subsection 31(2), or

(b) to contribute at a lesser rate than that specified in this subsection,

by reservation from that salary or annual allowance, contribute to the Retiring Allowances Account an amount equal to four per cent of the amount payable to the member by way of that salary or annual allowance.

Maximum contribution

(3) Notwithstanding subsection (2) but subject to subsection (4), where the aggregate of amounts payable to a person as a member in respect of one or more sessions in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

(a) the earnings limit of the member for that calendar year, or

(b) where the person is not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

that member shall not contribute under subsection (2) on the excess amount.

Non-application of maximum contribution rule

(4) Subsection (3) does not apply in respect of a session in a calendar year to a member who is prohibited by virtue of paragraph 12(1)(b) from contributing on any amount payable to the member by way of sessional indemnity in respect of that session.

R.S., 1985, c. M-5, s. 9; 1992, c. 46, s. 81; 2000, c. 27, s. 3.

Election to contribute in respect of previous sessions

10. (1) Subject to this section, where a person ceases to be a member and subsequently becomes a member, the person may, within one year after the first day on which Parliament is in session after that person subsequently becomes a member, elect in accordance with subsection 56(2) to contribute under this Part to the Retiring Allowances Account in respect of any previous session during which that person was a member.

Election to contribute in respect of previous period

(1.1) A member who is required to make contributions under subsection 9(1.1) may, within one year after the day on which this subsection comes into force, elect in accordance with subsection 56(2) to contribute under this Part to the Retiring Allowances Account in respect of the period that consists of the period during which that member was a member but was not required to make contributions and the period in respect of which that member was paid a withdrawal allowance under subsection 2.3(2).

(2) No election shall be made by a person under subsection (1) on or after January 1, 1992 in respect of any previous session unless the person makes an election in respect of that session at the same time to contribute under Part II to the Compensation Arrangements Account.

Election for both plans

(2.1) No election shall be made by a member under subsection (1.1) unless the member makes an election at the same time to contribute in respect of the same period under Part II to the Compensation Arrangements Account.

Conditions of election

(3) Where a person ceases to be a member and subsequently becomes a member, the person may elect under subsection (1) to contribute under this Part in respect of a previous session only if

(a) the person previously contributed or elected to contribute in respect of that session under Part I or III of the former Act or under this Part and a withdrawal allowance in respect of that session became payable to that person under section 15 or 32 of the former Act or under section 18 of this Act, as the case may be;

(b) the person was, immediately before ceasing to be a member, eligible to make an election to contribute in respect of that session but did not do so;

(c) the person was not a member on the day on which this paragraph came into force and was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person; or

(d) the person was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under subsection (1.1).

11. (1) Where a member elects to contribute to the Retiring Allowances Account in respect of a previous session, the member shall pay into the Consolidated Revenue Fund

(a) in the case of an election made on or after January 1, 1992,

(i) a contribution equal to four per cent of the aggregate of the amounts paid to the member in respect of that previous session

(A) by way of sessional indemnity, and

(B) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance, and

(ii) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that session to the day on which the election is made; and

(b) in the case of an election made before January 1, 1992,

(i) where a member of the House of Commons made an election under subsection 22(1) of the former Act before August 1, 1981, or a member of the Senate made an election under that subsection, a contribution equal to

(A) six per cent of the amount of the sessional allowance paid to the member under section 55 of the Parliament of Canada Act in respect of that session if it was held before the commencement of the 26th Parliament,

(B) seven and one-half per cent of the amount paid to the member as a member of the House of Commons, or six per cent of the amount paid to the member as a Senator, as the case may be, by way of sessional indemnity, in respect of that session if it was held after the 25th Parliament, and

(C) seven and one-half per cent of the amount paid to the member by way of salary or annual allowance in respect of that session if the member, by the election, elected to contribute thereon,

minus the total amount of any contributions that the member paid or elected to pay under Parts I to V of the former Act in respect of those amounts and that were not repaid as a withdrawal allowance,

(ii) where a member of the House of Commons made an election under subsection 22(1) of the former Act after August 1, 1981 and before January 1, 1992, or a member made an election under subsection 22(2) of that Act, a contribution equal to ten per cent of the amount paid to the member as a member of the House of Commons by way of sessional indemnity in respect of that session, minus the total amount of any contributions that the member paid or elected to pay under Parts I to V of the former Act in respect of those amounts and that were not repaid as a withdrawal allowance,

(iii) where a member made an election under subsection 21(7) of the former Act in respect of a salary or an annual allowance, a contribution equal to two and one-half per cent of the amount paid to the member by way of that salary or allowance in respect of that session,

(iv) where a member made an election under subsection 22(3) of the former Act in respect of a salary or an annual allowance, a contribution not exceeding ten per cent of the amount paid to the member by way of that salary or allowance in respect of that session,

(v) except in respect of the portion of that contribution specified in subparagraph (vi), interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that sesson to the day on which the election is made, and

(vi) in respect of the portion of that contribution included in a withdrawal allowance paid under Parts I to V of the former Act, the interest on the aggregate of

(A) that portion of the contribution, and

(B) the interest on that portion of the contribution that was included in the withdrawal allowance,

calculated at a rate and in the manner prescribed from the day on which the payment of the withdrawal allowance was made to the day on which the election is made.

Contributions in respect of previous period

(1.1) If a member elects under subsection 10(1.1) to contribute to the Retiring Allowances Account in respect of the period referred to in that subsection, the member shall pay into the Consolidated Revenue Fund

(a) a contribution equal to four per cent of the aggregate of the amounts paid to the member in respect of that period

(i) by way of sessional indemnity, and

(ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance; and

(b) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that period to the day on which the election is made.

Maximum contribution

(2) Notwithstanding clause (1)(a)(i)(B) or subparagraph (1.1)(a)(ii), where the aggregate of amounts paid to a person as a member in respect of one or more previous sessions, or in respect of a particular period, in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

(a) the earnings limit of the member for that calendar year, or

(b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

the member shall not, in respect of that previous session or particular period, contribute under that clause or subparagraph on the excess amount.

R.S., 1985, c. M-5, s. 11; 1992, c. 46, s. 81; 2000, c. 27, s. 5.

Limits on contributions

12. (1) Notwithstanding anything in this Part, no contribution shall be paid by a member under this Part

(a) in respect of any session in the course of which the member ceases to be a Senator by reason of disqualification or was expelled from the House of Commons;

(b) subject to subsection (2), in respect of any amount payable to the member by way of sessional indemnity, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the credit of the member by the multipliers set out in subsection 16(1) and, as applicable, paragraph 36(a) or (b) equals 0.75; or

(c) after the member has reached seventy-one years of age.

Exception for one per cent

(2) A member shall, by reservation from the sessional indemnity payable to the member, continue to contribute under this Part one per cent of the amount payable to the member by way of that sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the credit of the member by the multipliers set out in subsection 16(1) and, as applicable, paragraph 36(a) or (b) equals 0.75.

Exclusions from computation of contributions

(3) In a computation of the total amount that a member has contributed or elected to contribute under this Part and, where applicable, Parts I to V of the former Act, there shall not be included

(a) any contributions in respect of which a withdrawal allowance has been paid;

(b) any contributions in respect of which the election of the member has been revoked; or

(c) any amount paid by way of interest.

R.S., 1985, c. M-5, s. 12; 1992, c. 46, s. 81.

Allowances

Payment of allowances

13. An allowance or other benefit shall be paid in accordance with this Part to or in respect of a person who, being a member, ceases to be a member or, being a member or former member, dies.

R.S., 1985, c. M-5, s. 13; 1992, c. 46, s. 81.

Allowance on ceasing to be a member before January 1, 1992

14. (1) Subject to section 58, where a person ceased to be a member before January 1, 1992, having contributed or elected to contribute under Part I or III of the former Act as a member for at least six years, there shall be paid to that person during the lifetime of that person in respect of all those contributions, other than those made under subsection 21(5) or (7) of that Act, a retirement allowance equal to the average annual sessional indemnity of that person as a member, multiplied by

(a) with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (2) and (3), the aggregate of

(i) the number of years of pensionable service to the credit of that person as a result of contributions made under subsection 21(4) or subparagraph 23(a)(iii) of that Act multiplied by 0.02,

(ii) the number of years of pensionable service to the credit of that person as a result of contributions made as a member of the House of Commons under Parts I and III of that Act, other than subsection 21(4) or subparagraph 23(a)(iii), multiplied by

(A) 0.035, in the case of each of the first ten years,

(B) 0.03, in the case of each of the next ten years, and

(C) 0.02, in the case of each year thereafter, and

(iii) the number of years of pensionable service to the credit of that person as a result of contributions made as a Senator under Parts I and III of that Act, other than subsection 21(4) or subparagraph 23(a)(iii), multiplied by 0.03; and

(b) with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of those years multiplied by 0.05.

Calculation of years of pensionable service

(2) For the purposes of subsection (1), in respect of time spent as a Senator or time spent as a member of the House of Commons before August 1, 1981, and in respect of which no election under subsection 22(2) of the former Act was made, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person

(a) for each $240 contributed or elected to be contributed on the amount received as a member by way of sessional indemnity in respect of sessions of Parliament held before November 12, 1953;

(b) for each $480 contributed or elected to be contributed on the amount received as a member by way of sessional indemnity in respect of sessions of Parliament held after November 11, 1953 and before April 8, 1963;

(c) for each amount, equal to seven and one-half per cent of the sessional indemnity payable to a member of the House of Commons during any period of twelve months beginning on April 8, 1963, or on April 8 of any subsequent year, that the person has contributed or elected to contribute on the amount received as a member of the House of Commons by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months;

(d) for each amount, equal to six per cent of the sessional indemnity payable to a member of the Senate during any period of twelve months beginning on April 4, 1965, or on April 4 of any subsequent year, that the person has contributed or elected to contribute on the amount received as a member of the Senate by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months; and

(e) for each amount, equal to the greater of $1,350 and seven and one-half per cent of theessional indemnity payable to a member of the House of Commons, during any calendar year, that the person has contributed or elected to contribute in respect of any amount paid by way of salary or annual allowance during that calendar year.

Idem

(3) Where any amount that a person referred to in subsection (2) has contributed or elected to contribute under Parts I and III of the former Act, in respect of any sessions referred to in paragraph (2)(a), (b), (c) or (d) or in respect of any salary or annual allowance described in paragraph (2)(e), is less than the amount set out in that paragraph, the person is deemed to have to the credit of that person such portion of a year’s pensionable service as that lesser amount bears to the amount set out in that paragraph.

Idem

(4) For the purposes of subsection (1), in respect of time spent as a member of the House of Commons after July 31, 1981 and before 1992, or any period in respect of which an election under subsection 22(2) of the former Act was made, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to ten per cent of the sessional indemnity payable to a member of the House of Commons during any period of twelve months beginning on April 8 of any year, that the person has contributed or elected to contribute on the amount received as a member of the House of Commons by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months.

Application of subsection (3)

(5) In the application of subsection (4), the deeming provision of subsection (3) in relation to a portion of a year’s pensionable service shall apply, with such modifications as the circumstances require.

Limitation

(6) Notwithstanding anything in this section, the retirement allowance payable to a person under this section shall not exceed the average annual sessional indemnity of the person multiplied by 0.75.

R.S., 1985, c. M-5, s. 14; 1989, c. 6, s. 15; 1992, c. 46, s. 81.

Additional retirement allowance on ceasing to be a member before January 1, 1992

15. (1) Subject to section 58, where a person ceased to be a member before January 1, 1992, having contributed or elected to contribute under Part I or III of the former Act as a member for at least six years and has contributed pursuant to subsection 21(5) or (7) of that Act, there shall be paid to the person during the lifetime of that person an additional retirement allowance equal to the average annual sessional indemnity as a member multiplied by the number of years of pensionable service to the credit of that person calculated in accordance with subsections (2) and (3), multiplied by 0.05.

Calculation of years of pensionable service

(2) For the purposes of subsection (1), a person, on ceasing to be a member, is deemed to have one year of pensionable service to the credit of that person for each amount, equal to ten per cent of the sessional indemnity payable to a member of the House of Commons, during any calendar year, that the person has contributed or elected to contribute in respect of any amount paid by way of a salary or an annual allowance during that calendar year.

Application of subsection 14(3)

(3) In the application of subsection (2), the deeming provision of subsection 14(3) in relation to a portion of a year’s pensionable service shall apply, with such modifications as the circumstances require.

R.S., 1985, c. M-5, s. 15; 1992, c. 46, s. 81.

Allowance on ceasing to be a member on or after January 1, 1992

16. (1) Subject to sections 58 and 59, where a person ceases to be a member on or after January 1, 1992, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years, there shall be paid to that person during the lifetime of that person in respect of all those contributions, other than those made under this Part in respect of any amount paid by way of salary or annual allowance or under subsection 12(2) of this Act or under subsection 21(5) or (7) of the former Act, a retirement allowance equal to the average annual sessional indemnity of the person multiplied by

(a) with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (3), (4) and (6), the number of those years multiplied by 0.03, in the case of a member of the Senate, and by 0.05, in the case of a member of the House of Commons; and

(b) subject to subsection (2), with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (5) and (6), the number of those years multiplied by 0.02.

Age limitation

(2) The portion of a retirement allowance that is payable to a person under paragraph (1)(b) is not payable unless the person has reached sixty years of age.

Calculation of years of pensionable service to the credit of Senators before January 1, 1992

(3) For the purposes of paragraph (1)(a), in respect of time spent as a member of the Senate before January 1, 1992, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to six per cent of the sessional indemnity payable to a member of the Senate during any period of twelve months beginning on April 4, 1965, or on April 4 of any subsequent year, that the person has contributed or elected to contribute on the amount received as a member of the Senate by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months.

Calculation of years of pensionable service to the credit of members of the House of Commons before January 1, 1992

(4) For the purposes of paragraph (1)(a), in respect of time spent as a member of the House of Commons before January 1, 1992, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to ten per cent of the sessional indemnity payable to a member of the House of Commons during any period of twelve months beginning on April 8 of any year, that the person has contributed or elected to contribute on the amount received as a member of the House of Commons by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months.

Calculation of years of pensionable service after January 1, 1992

(5) For the purposes of paragraph (1)(b), in respect of time spent as a member on or after January 1, 1992, or any period of pensionable service in respect of which an election under section 10 has been made after that date, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to four per cent of the sessional indemnity payable to a member during any period of twelve months beginning

(a) in respect of members of the House of Commons, on April 8 of any year, and

(b) in respect of members of the Senate, on April 4 of any year,

class="ContinuedSectionSubthat the person has contributed or elected to contribute under this Part on the amount received as a member by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months.

Idem

(6) Where any amount that a person referred to in subsection (3), (4) or (5) has contributed or elected to contribute under this Part or Part I or III of the former Act in respect of any sessions referred to in that subsection is less than the amount set out in that subsection, that person is deemed to have to the credit of the person such portion of a year’s pensionable service as that lesser amount bears to the amount set out in that subsection.

R.S., 1985, c. M-5, s. 16; 1992, c. 46, s. 81.

Additional retirement allowance on ceasing to be a member on or after January 1, 1992

17. (1) Subject to section 58, where a person ceases to be a member on or after January 1, 1992, having contributed or elected to contribute under this Part or Part III of the former Act as a member for at least six years and has contributed under this Part in respect of any amount paid by way of salary or annual allowance or under subsection 21(5) or (7) of the former Act, there shall be paid to the person during the lifetime of that person an additional retirement allowance equal to the average annual sessional indemnity of the person multiplied by

(a) with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (3) and (5), the number of such years multiplied by 0.05; and

(b) subject to subsection (2), with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of such years multiplied by 0.02.

Age limitation

(2) The portion of an additional retirement allowance that is payable to a person under paragraph (1)(b) is not payable unless the person has reached sixty years of age.

Calculation of years of pensionable service before January 1, 1992

(3) For the purposes of paragraph (1)(a), in respect of time spent as a member before January 1, 1992, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to ten per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has contributed or elected to contribute in respect of any amount paid by way of salary or annual allowance during that calendar year.

Calculation of years of pensionable service after January 1, 1992

(4) For the purposes of paragraph (1)(b), in respect of time spent as a member on or after January 1, 1992, or any period of pensionable service in respect of which an election under section 10 has been made after that date, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to four per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has, during that calendar year, contributed pursuant to subsection 9(2) or elected to contribute pursuant to clause 11(1)(a)(i)(B).

Application of subsection 16(6)

(5) In the application of subsection (3) or (4), the deeming provision of subsection 16(6) in relation to a portion of a year’s pensionable service shall apply, with such modifications as the circumstances require.

R.S., 1985, c. M-5, s. 17; 1992, c. 46, s. 81.

Withdrawal Allowances

Withdrawal allowance

18. There shall be paid to a person who ceases to be a member but who has not contributed or elected to contribute under this Part or Parts I, III and IV of the former Act as a member for at least six years a withdrawal allowance, in a lump sum, equal to the aggregate of

(a) the total amount of the contributions that the person has paid under this Part and Parts I, III and IV of the former Act, and

(b) the interest on those contributions that the person has paid under section 11 or under section 23 of the former Act.

R.S., 1985, c. M-5, s. 18; 1992, c. 46, s. 81.

Withdrawal allowance where member expelled

19. There shall be paid to a person who ceases to be a Senator by reason of disqualification or who is expelled from the House of Commons a withdrawal allowance, in a lump sum, equal to the aggregate of

(a) the total amount of the contributions that the person has paid under this Part and Parts I, III and IV of the former Act, and

(b) the interest on those contributions that the person has paid under section 11 or under section 23 of the former Act.

R.S., 1985, c. M-5, s. 19; 1989, c. 6, s. 16; 1992, c. 46, s. 81.

19.1 (Repealed, 1998, c. 23, s. 12)

Survivor Benefits

Survivor benefits

20. (1) On the death of a member or former member, there shall be paid

(a) to the survivor, an allowance equal to three fifths of the basic retirement allowance, but, if two survivors are entitled to an allowance under this paragraph, the total amount of the allowances shall not exceed three fifths of the basic retirement allowance and that total amount shall be apportioned in accordance with subsection (1.1); and

(b) to each child, an allowance equal to one tenth of the basic retirement allowance or, if the member or former member died leaving no one entitled to an allowance under paragraph (a), two tenths of the basic retirement allowance, but the total amount of the allowances shall not exceed three tenths of the basic retirement allowance or, if the member or former member died leaving no one entitled to an allowance under paragraph (a), eight tenths of the basic retirement allowance.

Apportionment

(1.1) For the purposes of paragraph (1)(a), the total amount shall be apportioned so that

(a) the survivor referred to in paragraph (a) of the definition “survivor” in subsection 2(1) receives an amount, if any, equal to the total amount less any amount determined under paragraph (b); and

(b) the survivor referred to in paragraph (b) of that definition receives an amount equal to that proportion of the total amount that the number of years that survivor cohabited with the member or former member while a member is of the number of years that the member or former member was a member.

Years

(1.2) In determining a number of years for the purposes of subsection (1.1), part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

Definition of “basic retirement allowance”

(2) In this section, “basic retirement allowance” means

(a) in the case of a former member, the aggregate of all the retirement allowances and additional retirement allowances that the former member was receiving under this Part at the time of death or would have been entitled to receive under this Part if the former member had reached sixty years of age immediately before death; and

(b) in the case of a member, the aggregate of all the retirement allowances and additional retirement allowances that the member would have been entitled to receive under this Part if the member had ceased to be a member and had reached sixty years of age immediately before death.

21. Subject to the regulations, a child who is born to or adopted by a member or who becomes the stepchild of a member after that member ceases to be a member is not entitled to an allowance under section 20.

R.S., 1985, c. M-5, s. 21; 1992, c. 46, s. 81.

Saving provision

22. Nothing in section 21 shall prejudice any right that a child of an earlier marriage of a member or former member has to an allowance under section 20.

R.S., 1985, c. M-5, s. 22; 1992, c. 46, s. 81.

Election for joint and survivor benefit

23. (1) A former member who is entitled to a retirement allowance or additional retirement allowance under this Part or a compensation allowance or additional compensation allowance under Part II and who has a spouse to whom, in the event of that former member’s death, no allowance would be paid pursuant to paragraph 20(1)(a) or 40(1)(a) may elect, subject to the regulations and in accordance with subsection 56(2), to receive, instead of all future payments of the aggregate of those allowances, a joint and survivor benefit in an amount determined in accordance with subsection (2).

Election for both Parts

(1.1) No election may be made by a former member under subsection (1), unless the former member makes an election under subsection 43(1), if applicable, at the same time.

Adjustment

(2) For the purposes of subsection (1), the amount of the joint and survivor benefit is determined by adjusting in accordance with the regulations the aggregate of the allowances referred to in that subsection to which the former member is entitled at the time of the election, but the actuarial present value of the joint and survivor benefit may not be less than the actuarial present value of that aggregate.

Revocation

(2.1) An election under subsection (1) is irrevocable except under such circumstances and such terms and conditions as are prescribed.

Revocation of election

(3) Where a former member who made an election under subsection (1) subsequently becomes a member on any day thereafter, that election is deemed to be revoked on that day.

Survivor benefit

(4) Except where an election under subsection (1) is revoked or deemed to be revoked, on the death of the former member there shall be paid to the person who was the spouse of the former member at the time of the election and the time of the death a joint and survivor benefit in an amount determined in accordance with the regulations.

R.S., 1985, c. M-5, s. 23; 1992, c. 46, s. 81; 1995, c. 30, s. 5.

Duration of entitlement

24. An allowance under section 20 or a joint and survivor benefit under subsection 23(4)

(a) begins to be payable

(i) in respect of the death of a member, on the first day of the month immediately after the month in which the member dies, or

(ii) in respect of the death of a former member, on the day after the day on which the former member dies; and

(b) in the case of an allowance under paragraph 20(1)(a) or a joint and survivor benefit payable to the spouse, continues during the lifetime of the recipient.

R.S., 1985, c. M-5, s. 24; 1992, c. 46, s. 81; 1995, c. 30, s. 6.

Allowance to be paid monthly

25. An allowance under section 20 or a joint and survivor benefit under subsection 23(4) shall be paid monthly in arrears in approximately equal instalments.

R.S., 1985, c. M-5, s. 25; 1992, c. 46, s. 81.

Pension Benefits Division Act

26. Notwithstanding sections 20 to 25, where a division of an allowance or other benefit that has accrued under this Part to a member or former member during any period of pensionable service is effected under the Pension Benefits Division Act, the spouse or former spouse in whose favour the division is effected ceases to be entitled to any allowance under section 20 or joint and survivor benefit under subsection 23(4) in respect of that service.

R.S., 1985, c. M-5, s. 26; 1992, c. 46, s. 81.

Part Ii. Members Of Parliament Retirement Compensation Arrangements

Establishment of Account

Compensation Arrangements Account

27. (1) There is hereby established in the accounts of Canada an account to be known as the Members of Parliament Retirement Compensation Arrangements Account to which shall be credited

(a) the contributions paid pursuant to sections 31, 33 and 47;

(b) the interest paid in accordance with paragraphs 33(1)(c) and (2)(d);

(c) the amounts referred to in section 28; and

(d) the amounts credited to that Account pursuant to subsection 3(2).

Allowances paid out of C.R.F. and charged to Account

(2) All allowances and other benefits payable under this Part or Part III and all supplementary benefits payable in respect of those allowances or benefits under Part IV shall be paid out of the Consolidated Revenue Fund and charged to the Compensation Arrangements Account.

R.S., 1985, c. M-5, s. 27; 1992, c. 46, s. 81.

Amounts credited to Account

28. (1) The following amounts are required, pursuant to paragraph 27(1)(c), to be credited to the Compensation Arrangements Account in each fiscal year:

(a) in respect of every month, an amount equal to the amount estimated by the Minister to be required to provide for the costs of all allowances, supplementary benefits and other benefits that have accrued in respect of that month and that will become chargeable against the Compensation Arrangements Account; and

(b) an amount representing interest on the balance from time to time to the credit of the Compensation Arrangements Account, calculated in accordance with the regulations.

Idem

(2) There shall be credited to the Compensation Arrangements Account in each calendar year an amount equal to the amount, if any, determined at the end of the year to be refundable for the year in respect of that Account under subsection 207.7(2) of the Income Tax Act.

R.S., 1985, c. M-5, s. 28; 1992, c. 46, s. 81.

Amounts to be credited on basis of valuation report

29. Following the laying before Parliament of any valuation report pursuant to subsection 66(1) that relates to the Compensation Arrangements Account, there shall be credited to the Compensation Arrangements Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated to be to the credit of the Account at that time, meet the total cost of all allowances and other benefits payable under this Part and Part III and all supplementary benefits payable in respect of those allowances or benefits under Part IV.

R.S., 1985, c. M-5, s. 29; 1992, c. 46, s. 81.

Amounts to be charged to Account

30. (1) There shall be charged to the Compensation Arrangements Account in each calendar year an amount equal to the amount of tax, if any, determined at the end of the year to be payable for the year in respect of that Account under subsection 207.7(1) of the Income Tax Act.

Amounts to be credited to other accounts

(2) The amounts charged to the Compensation Arrangements Account pursuant to subsection (1) shall be credited to the appropriate account in the accounts of Canada.

R.S., 1985, c. M-5, s. 30; 1992, c. 46, s. 81.

Members’ Contributions

Contributions

31. (1) A member shall, by reservation from the sessional indemnity of the member, contribute to the Compensation Arrangements Account

(a) where the member is a member of the House of Commons,

(i) if the member has not reached seventy-one years of age, five per cent, or

(ii) if the member has reached seventy-one years of age, nine per cent, and

(b) where the member is a member of the Senate,

(i) if the member has not reached seventy-one years of age, three per cent, or

(ii) if the member has reached seventy-one years of age, seven per cent

of the amount payable to the member by way of sessional indemnity.

Contributions

(1.1) Despite subsection 2.3(1), beginning on the date this subsection comes into force, a member who was entitled to elect under sections 2.1 and 2.6 and who did not elect shall, by reservation from the sessional indemnity of the member, contribute to the Compensation Arrangements Account five per cent of the amount payable to the member by way of sessional indemnity if the member has not reached seventy-one years of age or nine per cent of that amount if the member has reached seventy-one years of age.

(2) A member who is in receipt of a salary or an annual allowance shall, unless the member elects, in accordance with subsection 56(2) in respect of that salary or annual allowance, not to contribute under this subsection and has at the same time elected not to contribute under subsection 9(2), by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to

(a) if the member has not reached seventy-one years of age, five per cent, or

(b) if the member has reached seventy-one years of age, nine per cent

of the amount payable to the member by way of that salary or annual allowance.

Maximum contribution

(3) Notwithstanding paragraph (2)(a) but subject to subsection (4), where the aggregate of amounts payable to a person as a member who has not reached seventy-one years of age in respect of one or more sessions in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

(a) the earnings limit of the member for that calendar year, or

(b) where the person is not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

that member shall not contribute under that paragraph on the excess amount, but shall instead, by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account nine per cent of the excess amount.

Non-application of maximum contribution rule

(4) Subsection (3) does not apply in respect of a session in a calendar year to a member who is prohibited by virtue of paragraph 34(1)(b) from contributing on any amoun payable to the member by way of sessional indemnity in respect of that session.

32. (1) Subject to this section, where a person ceases to be a member and subsequently becomes a member, that person may, within one year after the first day on which Parliament is in session after that person subsequently becomes a member, elect in accordance with subsection 56(2) to contribute under this Part to the Compensation Arrangements Account in respect of any previous session during which that person was a member.

Election to contribute in respect of previous period

(1.1) A member who is required to make contributions under subsection 31(1.1) may, within one year after the day on which this subsection comes into force, elect in accordance with subsection 56(2) to contribute under this Part to the Compensation Arrangements Account in respect of the period that consists of the period during which that member was a member but was not required to make contributions and the period in respect of which that member was paid a withdrawal allowance under subsection 2.3(2).

(2) No election shall be made by a person under subsection (1) in respect of any previous session unless the person makes at the same time an election in respect of that session to contribute under Part I to the Retiring Allowances Account.

Election for both plans

(2.1) No election shall be made by a member under subsection (1.1) unless the member makes an election at the same time to contribute in respect of the same period under Part I to the Retiring Allowances Account.

Conditions of election

(3) A person may elect under subsection (1) to contribute under this Part in respect of a previous session only if

(a) that person previously contributed or elected to contribute in respect of that session under Part I or III of the former Act or under this Part and a withdrawal allowance in respect of that session became payable to that person under section 15 or 32 of the former Act or under section 38 of this Act, as the case may be;

(b) that person was, immediately before ceasing to be a member, eligible to make an election to contribute in respect of that session but did not do so;

(c) the person was not a member on the day on which this paragraph came into force and was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person; or

(d) the person was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under subsection (1.1).

33. (1) Where a member elects to contribute to the Compensation Arrangements Account in respect of a previous session, the member shall pay into the Consolidated Revenue Fund

(a) in the case of a member who, before the day on which this paragraph comes into force, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons, a contribution equal to seven per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to eleven per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the House of Commons in respect of that previous session

(i) by way of sessional indemnity, and

(ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance;

(a.1) in the case of a member who, on or after the day on which this paragraph comes into force, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons, a contribution equal to five per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the House of Commons in respect of that previous session

(i) by way of sessional indemnity, and

(ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance;

(b) in the case of a member who makes an election under subsection 32(1) in respect of amounts paid as a member of the Senate,

(i) a contribution equal to three per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to seven per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the Senate in respect of that previous session by way of sessional indemnity,

(ii) where the election was made before the day on which this subparagraph comes into force, a contribution equal to seven per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to eleven per cent if the member has reached that age at that time, of the aggregate of amounts paid to that member as a member of the Senate in respect of that previous session by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance under this subparagraph and, where applicable, subsection (2), and

(iii) where the election was made on or after the day on which this subparagraph comes into force, a contribution equal to five per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to that member as a member of the Senate in respect of that previous session by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance under this subparagraph and, where applicable, subsection (2); and

(c) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that session to the day on which the election is made.

Contribtions in respect of previous period

(1.1) If a member elects under subsection 32(1.1) to contribute to the Compensation Arrangements Account in respect of the period referred to in that subsection, the member shall pay into the Consolidated Revenue Fund

(a) a contribution equal to five per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member in respect of that period

(i) by way of sessional indemnity, and

(ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance; and

(b) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that period to the day on which the election is made.

Maximum contribution

(2) Notwithstanding subparagraphs (1)(a)(ii) and (1)(b)(ii), in the case of a person who has not reached seventy-one years of age at the time of the making of the election, where the aggregate of amounts paid to the person as a member in respect of one or more previous sessions in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

(a) the earnings limit of the member for that calendar year, or

(b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

the member shall not, in respect of that previous session, contribute under that subparagraph on the excess amount, but shall instead pay into the Consolidated Revenue Fund

(c) in the case of an election made before the day on which this paragraph comes into force, a contribution equal to eleven per cent of the excess amount and, in the case of an election made on or after that day, a contribution equal to nine per cent of the excess amount, and

(d) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of that salary or annual allowance was made to the day on which the election is made.

Maximum contribution

(3) Notwithstanding subparagraph (1.1)(a)(ii), in the case of a person who has not reached seventy-one years of age at the time of the making of the election, where the aggregate of amounts paid to the person as a member in respect of a particular period in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

(a) the earnings limit of the member for that calendar year, or

(b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

the member shall not, in respect of that period, contribute under that subparagraph on the excess amount, but shall instead pay into the Consolidated Revenue Fund

(c) a contribution equal to nine per cent of the excess amount, and

(d) the interest on that conribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of that salary or annual allowance was made to the day on which the election is made.

34. (1) Notwithstanding anything in this Part, no contribution shall be paid by a member under this Part

(a) in respect of any session in the course of which the member ceases to be a Senator by reason of disqualification or was expelled from the House of Commons; or

(b) subject to subsection (2), in respect of any amount payable to the member by way of sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the credit of the member by the multipliers set out in subsection 16(1) and, as applicable, paragraph 36(a) or (b) equals 0.75.

Exception if member has reached seventy-one years of age

(2) A member who has reached seventy-one years of age shall, by reservation from the sessional indemnity payable to that member, continue to contribute under this Part one per cent of the amount payable to the member by way of sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the credit of the member by the multipliers set out in subsection 16(1) and, as applicable, paragraph 36(a) or (b) equals 0.75.

Exclusions from computation of contributions

(3) In a computation of the total amount that a member has contributed or elected to contribute under this Part, there shall not be included

(a) any contributions in respect of which a withdrawal allowance has been paid under this Part;

(b) any contributions in respect of which the election of the member has been revoked under this Part; or

(c) any amount paid by way of interest.

R.S., 1985, c. M-5, s. 34; 1992, c. 46, s. 81.

Allowances

Payment of allowances

35. An allowance or other benefit shall be paid in accordance with this Part to or in respect of a person who, being a member, ceases to be a member or, being a member or former member, dies.

R.S., 1985, c. M-5, s. 35; 1992, c. 46, s. 81.

Compensation allowance in respect of sessional indemnity

36. (1) Subject to sections 58 and 59, where a person ceases to be a member on or after January 1, 1992, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years, there shall be paid to that person during the lifetime of that person in respect of contributions made under this Part, other than those made in respect of any amount paid by way of salary or annual allowance or those made under subsection 34(2), a compensation allowance equal to the average annual sessional indemnity of that person multiplied by the same number of years or portions of years of pensionable service to the credit of that person as is calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by

(a) in respect of contributions made as a member of the House of Commons,

(i) where the person has not reached sixty years of age,

(A) 0.05 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before the day on which this paragraph comes into force, and

(B) 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the day on which this paragraph comes into force,

(ii) subject to subparagraph (iii), where the person has reached sixty years of age,

(A) 0.03 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before the day on which this paragraph comes into force, and

(B) 0.02 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the day on which this paragraph comes into force, and

(iii) where the person has reached seventy-one years of age and contributed thereafter,

(A) 0.05 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, in the period commencing on the later of the seventy-first birthday and January 1, 1992 and ending on the day before the day on which this paragraph comes into force, and

(B) 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the later of the seventy-first birthday and the day on which this paragraph comes into force; and

(b) in respect of contributions made as a member of the Senate,

(i) where the person has not reached sixty years of age, 0.03,

(ii) subject to subparagraph (iii), where the person has reached sixty years of age, 0.01, and

(iii) where the person has reached seventy-one years of age and contributed thereafter, 0.03 for the years or portions of years of pensionable service calculated by reference to those contributions made on or after the seventy-first birthday, otherwise than pursuant to an election made before that birthday.

Special case

(2) For the purposes of calculating the compensation allowance payable under subsection (1) to a person who, after the coming into force of this subsection, elected to contribute under this Part inespect of any session or part of a session before that coming into force, the multipliers referred to in paragraph (1)(a) shall, in lieu of the numbers set out therein, be

(a) where the person has not reached sixty years of age, 0.04;

(b) subject to paragraph (c), where the person has reached sixty years of age, 0.02; and

(c) where the person has reached seventy-one years of age and contributed thereafter, 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made on or after the seventy-first birthday, otherwise than pursuant to an election made before that birthday.

R.S., 1985, c. M-5, s. 36; 1992, c. 46, s. 81; 1995, c. 30, s. 9.

Additional compensation allowance

37. (1) Subject to section 58, where a person ceases to be a member on or after January 1, 1992, having contributed or elected to contribute under this Part or Part I or III of the former Act, as a member for at least six years and has contributed under this Part in respect of any amount paid by way of salary or annual allowance, there shall be paid to the person during the lifetime of that person an additional compensation allowance determined in accordance with this section.

Amount payable

(2) The additional compensation allowance payable to a person pursuant to this section is an amount equal to the aggregate of

(a) the average annual sessional indemnity of the person multiplied by the same number of years or portions of years of pensionable service to the credit of the person as is calculated for the purposes of paragraph 17(1)(b) in accordance with subsections 17(4) and (5), multiplied by

(i) where the person has not reached sixty years of age,

(A) 0.05 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before the day on which this paragraph comes into force, and

(B) 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the day on which this paragraph comes into force,

(ii) subject to subparagraph (iii), where the person has reached sixty years of age,

(A) 0.03 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before the day on which this paragraph comes into force, and

(B) 0.02 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the day on which this paragraph comes into force, and

(iii) where the person has reached seventy-one years of age and contributed thereafter,

(A) 0.05 for the years or portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, in the period commencing on the later of the seventy-first birthday and January 1, 1992 and ending on the day before the day on which this paragraph comes into force, and

(B) 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in clause (A), on or after the later of the seventy-first birthday and the day on which this paragraph comes into force, and

(b) the average annual sessional indemnity of the person multiplied by the number of years of pensionable service calculated in accordance with subsections (3) and (4), multiplied by

(i) 0.05 for the years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before the day on which this paragraph comes into force, and

(ii) 0.04 for the years of pensionable service calculated by reference to those contributions made, otherwise than pursuant to an election referred to in subparagraph (i), on or after the day on which this paragraph comes into force.

Years of pensionable service

(3) For the purposes o paragraph (2)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to the credit of that person for

(a) each amount, equal to eleven per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has, during that calendar year, contributed or elected to contribute before the day on which this subsection comes into force pursuant to paragraph 31(2)(b) or subsection 31(3) or 33(2) or, if the person had reached seventy-one years of age at the time of making the election, pursuant to subparagraph 33(1)(a)(ii) or (b)(ii); and

(b) each amount, equal to nine per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has, during that calendar year, contributed or elected to contribute on or after the day on which this subsection comes into force pursuant to a provision referred to in paragraph (a).

Application of subsection 14(3)

(4) In the application of subsection (3), the deeming provision of subsection 14(3) in relation to a portion of a year’s pensionable service shall apply, with such modifications as the circumstances require.

Special case

(5) For the purposes of calculating the additional compensation allowance payable under subsection (2) to a person who, after the coming into force of this subsection, elected to contribute under this Part in respect of any session or part of a session before that coming into force,

(a) the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out therein, be

(i) where the person has not reached sixty years of age, 0.04,

(ii) subject to subparagraph (iii), where the person has reached sixty years of age, 0.02, and

(iii) where the person has reached seventy-one years of age and contributed thereafter, 0.04 for the years or portions of years of pensionable service calculated by reference to those contributions made on or after the seventy-first birthday, otherwise than pursuant to an election made before that birthday; and

(b) the multipliers referred to in paragraph (2)(b) shall, in lieu of the numbers set out therein, be 0.04.

R.S., 1985, c. M-5, s. 37; 1992, c. 46, s. 81; 1995, c. 30, s. 10.

Commencement of allowances

37.1 (1) Notwithstanding sections 36 and 37, the allowances otherwise payable to a person under those sections in respect of pensionable service calculated by reference to contributions made on or after the day on which this section comes into force, otherwise than pursuant to an election made before that day, are not payable until the earlier of

(a) the day on which the person reaches fifty-five years of age, and

(b) the day on which the person, after ceasing to be a member, becomes entitled to receive a disability pension under the Canada Pension Plan or a provincial pension plan similar thereto.

Exception

(2) Subsection (1) does not apply to a person who, on ceasing to be a member, is entitled to receive a disability pension under the Canada Pension Plan or a provincial pension plan similar thereto.

1995, c. 30, s. 11.

Withdrawal Allowances

Withdrawal allowance

38. There shall be paid to a person who ceases to be a member but who has not contributed or elected to contribute under this Part or Parts I, III and IV of the former Act as a member for at least six years a withdrawal allowance, in a lump sum, equal to the aggregate of

(a) the total amount of the contributions that the person has paid under this Part and Parts I, III and IV of the former Act, and

(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d).

R.S., 1985, c. M-5, s. 38; 1992, c. 46, s. 81.

Withdrawal allowance where member expelled

39. There shall be paid to a person who ceases to be a Senator by reason of disqualification or who is expelled from the House of Commons a withdrawal allowance, in a lump sum, equal to the aggregate of

(a) the total amount of the contributions that the person has paid under this Part and Parts I, III and IV of the former Act, and

(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d).

R.S., 1985, c. M-5, s. 39; 1992, c. 46, s. 81.

39.1 (Repealed, 1998, c. 23, s. 14)

Survivor Benefits

Survivor benefits

40. (1) On the death of a member or former member, there shall be paid

(a) to the survivor an allowance equal to three fifths of the basic compensation allowance, but, if more than one survivor is entitled to an allowance under this paragraph, the total amount of the allowances shall not exceed three fifths of the basic compensation allowance and that total amount shall be apportioned in accordance with subsection (1.1); and

(b) to each child, an allowance equal to one tenth of the basic compensation allowance or, if the member or former member died leaving no one entitled to an allowance under paragraph (a), two tenths of the basic compensation allowance, but the total amount of the allowances shall not exceed three tenths of the basic compensation allowance or, if the member or former member died leaving no one entitled to an allowance under paragraph (a), eight tenths of the basic compensation allowance.

Apportionment

(1.1) For the purposes of paragraph (1)(a), the total amount shall be apportioned so that

(a) the survivor referred to in paragraph (a) of the definition “survivor” in subsection 2(1) receives an amount, if any, equal to the total amount less any amount determined under paragraph (b); and

(b) the survivor referred to in paragraph (b) of that definition receives an amount equal to that proportion of the total amount that the number of years that survivor cohabited with the member or former member while a member is of the number of years that the member or former member was a member.

Years

(1.2) In determining a number of years for the purposes of subsection (1.1), a part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

Definition of “basic compensation allowance”

(2) In this section, “basic compensation allowance” means

(a) in the case of a former member, the aggregate of all the compensation allowances and additional compensation allowances that the former member was receiving under this Part at the time of death, calculated as if the former member had reached sixty years of age immediately before death; and

(b) in the case of a member, the aggregate of all the compensation allowances and additional compensation allowances that the member would have been entitled to receive under this Part if the member had ceased to be a member and had reached sixty years of age immediately before death.

41. Subject to the regulations, a child who is born to or adopted by a member or who becomes the stepchild of a member after that member ceases to be a member is not entitled to an allowance under section 40.

R.S., 1985, c. M-5, s. 41; 1992, c. 46, s. 81.

Saving provision

42. Nothing in section 41 shall prejudice any right that a child of an earlier marriage of a member or former member has to an allowance under section 40.

1992, c. 46, s. 81.

Election for joint and survivor benefit

43. (1) A former member who is entitled to a compensation allowance or additional compensation allowance under this Part or a retirement allowance or additional retirement allowance under Part I and who has a spouse to whom, in the event of that former member’s death, no allowance would be paid pursuant to paragraph 20(1)(a) or 40(1)(a) may elect, subject to the regulations and in accordance with subsection 56(2), to receive, instead of all future payments of the aggregate of those allowances, a joint and survivor benefit in an amount determined in accordance with subsection (2).

Election for both Parts

(1.1) No election may be made by a former member under subsection (1), unless the former member makes an election under subsection 23(1) at the same time.

Adjustment

(2) For the purposes of subsection (1), the amount of the joint and survivor benefit is determined by adjusting in accordance with the regulations the aggregate of the allowances referred to in that subsection to which the former member is entitled at the time of the election, but the actuarial present value of the joint and survivor benefit may not be less than the actuarial present value of that aggregate.

Revocation

(2.1) An election under subsection (1) is irrevocable except under such circumstances and such terms and conditions as are prescribed.

Revocation of election

(3) Where a former member who made an election under subsection (1) subsequently becomes a member on any day thereafter, that election is deemed to be revoked on that day.

Survivor benefit

(4) Except where an election under subsection (1) is revoked or deemed to be revoked, on the death of the former member there shall be paid to the person who was the spouse of the former member at the time of the election and the time of the death a joint and survivor benefit in an amount determined in accordance with the regulations.

1992, c. 46, s. 81; 1995, c. 30, s. 14.

Duration of entitlement

44. An allowance under section 40 or a joint and survivor benefit under subsection 43(4)

(a) begins to be payable

(i) in respect of the death of a member, on the first day of the month immediately after the month in which the member dies, or

(ii) in respect of the death of a former member, on the day after the day on which the former member dies; and

(b) in the case of an allowance under paragraph 40(1)(a) or a joint and survivor benefit payable to the spouse, continues during the lifetime of the recipient.

1992, c. 46, s. 81; 1995, c. 30, s. 15.

Allowance to be paid monthly

45. An allowance under section 40 or a joint and survivor benefit under subsection 43(4) shall be paid monthly in arrears in approximately equal instalments.

1992, c. 46, s. 81.

Pension Benefits Division Act

46. Notwithstanding sections 40 to 44, where a division of an allowance or other benefit that has accrued under this Part to a member or former member during any period of pensionable service is effected under the Pension Benefits Division Act, the spouse or former spouse in whose favour the division is effected ceases to be entitled to any allowance under section 40 or joint and survivor benefit under subsection 43(4) in respect of that service.

1992, c. 46, s. 81.

Part Iii. Prime Minister

Contributions

Contributions by Prime Minister

47. The member who holds the office of Prime Minister shall, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account an amount equal to seven per cent of that salary.

1992, c. 46, s. 81.

Allowances to former Prime Ministers

48. (1) There shall be paid to every person who has held the office of Prime Minister for four years an allowance beginning on the day on which that person ceases to be a member or reaches sixty-five years of age, whichever is the later, equal to two thirds of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on that day.

Duration of entitlement

(2) An allowance payable to a person under subsection (1) continues during the lifetime of that person, but is suspended in respect of any period during which the person is a Senator or a member of the House of Commons.

1992, c. 46, s. 81.

Allowance to survivor of former Prime Minister

49. (1) The survivor of a person described in subsection 48(1) shall be paid an allowance equal to one half of the allowance that the person was receiving pursuant to that subsection at the time of death or would have been eligible to receive if, immediately before the time of death, the person described in that subsection had ceased to hold the office of Prime Minister and had reached sixty-five years of age.

Apportionment when two survivors

(1.1) When an allowance is payable under this section and there are two survivors, the total amount of the allowance shall be apportioned so that

(a) the survivor referred to in paragraph (4)(a) receives an amount, if any, equal to the total amount less any amount determined under paragraph (b); and

(b) the survivor referred to in paragraph (4)(b) receives an amount equal to that proportion of the total amount that the number of years that the survivor cohabited with the person while the person was Prime Minister is of the number of years that the person was Prime Minister.

Years

(1.2) In determining a number of years for the purpose of paragraph (1.1)(b), a part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

Period of allowance

(2) An allowance payable under subsection (1) to the survivor of a person begins to be payable on the day after the day on which that person dies and continues during the lifetime of the survivor.

Allowance to be paid monthly

(3) An allowance payable under subsection (1) shall be paid monthly in arrears in approximately equal instalments.

Definition of “survivor”

(4) For the purposes of this section, “survivor” means

(a) a person who was married

(i) to a Prime Minister or former Prime Minister immediately before his or her death, and

(ii) in the case of a former Prime Minister, to him or her immediately before the time when he or she ceased to be a Prime Minister; or

(b) a person who establishes that the person was cohabiting in a relationship of a conjugal nature

(i) with a Prime Minister or former Prime Minister for a period of at least one year immediately before his or her death, and

(ii) in the case of a former Prime Minister, with him or her immediately before he or she ceased to be a Prime Minister.

1992, c. 46, s. 81; 2000, c. 12, s. 179.

Part Iv. Supplementary Benefits

Interpretation

Definitions

50. (1) In this Part,

“allowance”

« allocation »

“allowance” means any allowance or other benefit payable under Part I, II or III, other than a withdrawal allowance;

(a) the retirement year or retirement month of a former member is the year or month, as the case may be, in which, for the purposes of this Part, that person most recently ceased to be a member; and

(b) the retirement year or retirement month of a person who is in receipt of an allowance under subsection 20(1), 23(4), 40(1), 43(4) or 49(1) is the retirement year or retirement month, as the case may be, of the former member in respect of whose service the allowance is payable.

1992, c. 46, s. 81; 1995, c. 30, s. 16.

Supplementary Benefits

Supplementary benefit

51. (1) Subject to this Part, every person who is in receipt of an allowance under Part I, II or III shall be paid a supplementary benefit in respect of each such allowance received in a month in any calendar year.

Restriction

(2) A former member shall not be paid a supplementary benefit unless the former member has reached sixty years of age or is disabled.

1992, c. 46, s. 81; 1995, c. 30, s. 17.

Calculation of amount of supplementary benefit

52. Subject to sections 53 to 55, the supplementary benefit payable to a person pursuant to section 51 in respect of any allowance received in a month in any calendar year shall be determined with reference to the retirement year of the person and shall be in an amount equal to the amount that would be payable with respect to that allowance under section 4 of the Supplementary Retirement Benefits Act, as it read on December 31, 1991, if that Act applied in respect of that allowance.

1992, c. 46, s. 81.

Exception for first year benefits received

53. The supplementary benefit payable to a person for a month in the year immediately following the retirement year of the person is equal to the product obtained by multiplying

(a) the amount of the supplementary benefit that would, but for this section, be payable to the person for that month

by

(b) the ratio that the number of complete months that remained in the retirement year after the retirement month bears to twelve.

1992, c. 46, s. 81.

Person subsequently becoming a member

54. (1) Where a former member who is in receipt of an allowance subsequently becomes a member and payment of that allowance ceases, any supplementary benefit payable to that person after that person ceases to be a member shall be at least equal to the supplementary benefit that the former member would have received if that person had not subsequently become a member.

No decrease in amount of supplementary benefit

(2) The aggregate of the amount of an allowance and the amount of the supplementary benefit in respect of that allowance that is payable to a person pursuant to section 51 for a month in any year shall not be less than the aggregate of the amount of the allowance and the amount of the supplementary benefit that is payable to that person for any month in the year next before that year.

1992, c. 46, s. 81.

Manner of payment of supplementary benefit

55. The supplementary benefit payable to a person pursuant to section 51 in respect of any allowance shall be paid at the same times, in the same manner, during or in respect of the same periods and subject to the same terms and conditions as that allowance is payable to that person.

1992, c. 46, s. 81.

Part V. General

Right to elect for part of session

56. (1) A member who is entitled under section 10 or 32 to elect to contribute in respect of one or more sessions is entitled to elect to contribute in respect of a part thereof if that part is the most recent in time.

Form and date of election

(2) An election pursuant to any provision of this Act shall be made to the Minister in the form specified by the Minister and shall be deemed to be made on the day on which the form, duly signed by the person making the election, is placed in the course of delivery to the Minister.

Revocation of election

(3) A person may, at any time, revoke an election with respect to the whole or any part of the contributions then owing by that person under Part I or II by giving to the Minister a notice of revocation, in the form specified by the Minister, and thereupon that person

(a) is not required to pay the amounts owing under the provision in respect of which the revocation applies, but interest is payable on those amounts to the day on which the revocation takes place;

(b) shall, for the purpose of computing an allowance or other benefit under Part I or II, be deemed not to have elected to contribute the amount of the contributions in respect of which the revocation applies, and, if the allowance or other benefit has been calculated, it shall be recalculated accordingly and, if it has been paid to the person based on the contributions in respect of which the revocation applies, an amount equal to the difference between that benefit and the recalculated benefit may be recovered from that person, in the prescribed manner, from any allowance or other benefit payable under this Act to that person, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof; and

(c) may not again at any time elect to make those contributions.

1992, c. 46, s. 81; 1995, c. 30, s. 18.

Manner of payment

57. (1) Every amount required to be paid by a member pursuant to section 11 or 33 shall be paid at the option of that member

(a) in a lump sum, at the time of the making of the election; or

(b) in instalments, payable on such terms and conditions as are provided for by the regulations and in amounts established using such bases as to mortality and interest as are prescribed.

Recovery of amounts due

(2) Where any amount payable by a member or former member under a provision of this Act has become due but remains unpaid at the time of death of the member or former member, that amount, with interest at a rate prescribed from the time when it became due, may be recovered, in the prescribed manner, from any allowance or other benefit payable under subsection 20(1), 23(4), 40(1), 43(4) or 49(1) to another person in respect of the member or former member, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof, and any amount so recovered shall be deemed, for the purposes of that provision, to have been paid by the member or former member.

1992, c. 46, s. 81; 1995, c. 30, s. 19.

When allowance suspended

58. Where a former member, after becoming entitled to an allowance or other benefit under Part I, II or III, subsequently becomes a member, payment of the allowance or other benefit is suspended in respect of any period during which that person is a member.

1992, c. 46, s. 81.

Limitation respecting allowances

59. Notwithstanding anything in this Act, the aggregate of the retirement allowance payable to a person under section 16 and the compensation allowance payable to the person under section 36 shall not exceed the average annual sessional indemnity of the person multiplied by 0.75.

1992, c. 46, s. 81.

Definitions

59.1 (1) In this section,

“employment”

« emploi »

“employment” means the position of an individual in the service of some other person, including Her Majesty, that entitles the individual to fixed or ascertainable salary, fees or other compensation;

“federal position”

« emploi fédéral »

“federal position” means

(a) an office or employment the salary, fees or other compensation for which is paid in whole or in part out of the Consolidated Revenue Fund or out of monies appropriated by Parliament, and

(b) an office or employment in a departmental corporation or Crown corporation as defined respectively in sections 2 and 83 of the Financial Administration Act;

“federal service contract”

« marché fédéral de services »

“federal service contract” means a contract for the provision of service the consideration for the performance of which is paid in whole or in part out of the Consolidated Revenue Fund or out of monies appropriated by Parliament or by a departmental corporation or Crown corporation as defined respectively in sections 2 and 83 of the Financial Administration Act, but does not include an agreement under which an individual is engaged as an employee;

“office”

« charge »

“office” means the position of an individual that entitles the individual to fixed or ascertainable salary, fees or other compensation, and includes a judicial or diplomatic office and the position of corporation director;

“remuneration”

« rémunération »

“remuneration” means

(a) in respect of a federal position, the salary, fees or other compensation paid for or in respect of the carrying out of the duties and functions of the position, and

(b) in respect of a federal service contract, the consideration paid for the performance of the contract.

Presumptions

(2) For the purposes of this section, where a former member controls a partnership, corporation, association or other body that enters into a federal service contract,

(a) the former member is deemed to have entered into the contract at the time the body did so and to be a party to the contract so long as the body is a party and the former member continues to control it; and

(b) the remuneration in respect of the contract is deemed to equal the amount of the salary, fees or other compensation paid to the former member for or in respect of the services provided by the former member under the contract.

class=Report

(3) Every former member who, after the coming into force of this section, commences to hold a federal position or enters into a federal service contract and who is receiving or commences to receive an allowance or other benefit under Part I, II, III or IV, other than a withdrawal allowance or an allowance or benefit under paragraph 20(1)(a), subsection 23(4), paragraph 40(1)(a) or subsection 43(4) or 49(1), shall

(a) within sixty days after the later of the day on which the former member commenced to hold the position or entered into the contract and the day on which the former member commenced to receive the allowance or other benefit, notify the Minister in writing of the position or contract and the amount of the remuneration;

(b) within sixty days after each anniversary of the later day referred to in paragraph (a) and while holding the position or being a party to the contract, notify the Minister in writing of the total amount of the remuneration received in the preceding year; and

(c) within sixty days after ceasing to hold the position or to be a party to the contract or the contract is completed or otherwise terminated, notify the Minister in writing of the cessation or termination and the total amount of the remuneration received that was not previously reported under this section.

Additional information

(4) A former member referred to in subsection (3) shall furnish the Minister in writing with such additional information respecting the federal position or federal service contract as the Minister may require.

Reduction

(5) Where a former member referred to in subsection (3) receives remuneration of $5,000 or more in any year beginning on the day on which the former member commenced holding the federal position or entered into the federal service contract, or on any anniversary of that day, the aggregate of the allowances or other benefits referred to in that subsection payable to that former member in that year shall be reduced by one dollar for each dollar of the remuneration received in that year.

Recovery

(6) The amount of the reduction under subsection (5) may be recovered in accordance with the regulations from any allowance or other benefit payable to or in respect of the former member under this Act or otherwise, without prejudice to any other recourse available to Her Majesty with respect to the recovery of the amount.

Reductions ignored for certain purposes

(7) The amount of an allowance or other benefit payable under section 20, 23, 40, 43, 49 or 51 to or in respect of a former member to whom this section applies or applied shall be determined as if no reduction were made under this section to the allowances or other benefits payable to the former member.

1995, c. 30, s. 20.

Benefits not assignable, etc.

60. Subject to the Pension Benefits Division Act and to Part II of the Garnishment, Attachment and Pension Diversion Act,

(a) an allowance or other benefit under this Act is not capable of being assigned, charged, anticipated or given as security and any transaction that purports to assign, charge, anticipate or give as security any such allowance or other benefit is void;

(b) an allowance or other benefit to which a person is entitled under this Act is not capable of being surrendered or commuted during the lifetime of that person and any transaction that purports to do so is void; and

(c) an allowance or other benefit under this Act is exempt from attachment, seizure and execution, either at law or in equity.

1992, c. 46, s. 81; 1995, c. 30, s. 21.

Minimum benefit

61. Where a member or former member dies and there is no person to whom an allowance or other benefit may be paid in respect of that member, or the persons to whom an allowance or other benefit may be paid die or cease to be entitled thereto, any amount by which the total amount of the contributions paid by the member or former member under Parts I to III exceeds the aggregate of all amounts paid to those persons and the member or former member under those Parts or this Part as allowances or other benefits and under Part IV as supplementary benefits shall be paid, as a death benefit, to the estate of that member or former member or, if the amount to be paid is less than $1,000, shall be paid as authorized by the Minister.

1992, c. 46, s. 81.

Presumption as to death

62. (1) Where a member or former member or any person entitled to an allowance or other benefit under this Act has, either before or after December 31, 1992, disappeared under circumstances that, in the opinion of the Minister, raise beyond a reasonable doubt a presumption that the person is dead, the Minister may, for the purposes of this Act, determine the date on which that person’s death is presumed to have occurred, and thereupon that person shall be deemed for all purposes of this Act to have died on that date.

Change of date

(2) After having determined the date of a person’s death pursuant to subsection (1), the Minister may, on the basis of new information or evidence that the date of death is different from that determined, determine a different date of death, in which case the person shall be deemed for all purposes of this Act to have died on that different date.

1992, c. 46, s. 81; 1995, c. 30, s. 22.

Payment of interest

63. (1) Interest calculated in accordance with subsection (2) shall be paid on any withdrawal allowance payable under Part I or II or death benefit payable under this Act.

Calculation of interest

(2) Where, at any time after December 31, 1974, a person ceases to be a member, the Minister shall

(a) determine the aggregate of all amounts referred to in subsection 40(1) of the Members of Parliament Retiring Allowances Act, chapter M-10 of the Revised Statutes of Canada, 1970, and in paragraphs 18(a) and (b), 19(a) and (b), 38(a) and (b) and 39(a) and (b) of this Act that have been contributed or otherwise paid by the member

(i) before 1974, and

(ii) during each year subsequent to 1973 in which contributions were made by the member under this Act

and that have not previously been paid to the person as a withdrawal allowance or paid to the person under this section; and

(b) calculate interest at the rate and in the manner prescribed

(i) on the aggregate amount determined in respect of the period referred to in subparagraph (a)(i), from December 31, 1973 to December 31 of the year immediately preceding the year in which the person ceased to be a member, and

(ii) on the aggregate amount determined in respect of each contribution year referred to in subparagraph (a)(ii), from December 31 of that year to December 31 of the year immediately preceding the year in which the person ceased to be a member.

1992, c. 46, s. 81; 1995, c. 30, s. 23.

Recovery of amount paid in error

63.1 Any amount that has been paid in error to a person on account of an allowance or other benefit under this Act may be recovered, in the prescribed manner, from any allowance or other benefit subsequently payable to or in respect of that person under this Act, without prejudice to any other recourse available to Her Majesty with respect to the recovery of the amount.

1995, c. 30, s. 24.

Regulations

64. (1) The Governor in Council may make regulations

(a) prescribing, for the purposes of paragraph 5(1)(b) and 28(1)(b), the rates of interest, the manner of calculating interest and the times at which interest shall be credited to the Retiring Allowances Account and the Compensation Arrangements Account;

(b) prescribing, for the purposes of sections 11 and 33 and subsection 63(2), the rates of interest and the manner of calculating interest;

(c) prescribing, in the case of any allowance or other benefit payable under this Act, the days on which the payments of allowances or other benefits shall be made and providing that payment may be made in respect of any part of a period and that, subject to section 58, where a recipient ceases to be entitled to an allowance or other benefit or dies, payment may be made in respect of the full month in which the recipient ceases to be entitled to an allowance or other benefit or dies;

(d) providing, where a recipient of any allowance or other benefit payable under this Act is incapable of managing the recipient’s affairs, that the allowance or other benefit may be paid to another person on the recipient’s behalf;

(e)�(Repealed, 1995, c. 30, s. 25)

(f) respecting the manner in which amounts referred to in subsection 56(3) or 57(2) or section 63.1 may be recovered from any allowance or other benefit payable under this Act;

(g) providing for the terms and conditions for instalment payments under subsection 57(1) and prescribing the bases as to mortality and interest to be used in establishing the amounts of the payments;

(h) respecting, for the purposes of section 21 or 41, the circumstances under which a child to whom that section applies shall be entitled to an allowance under Part I or II;

(h.1) respecting the recovery of amounts under subsection 59.1(6) by deduction, lump sum payment, instalment payment or otherwise, including

(i) the sending of notices,

(ii) the making of elections with respect to the manner of the recovery of amounts or otherwise,

(iii) the prescribing of bases as to mortality and interest,

(iv) the estimation of amounts and the reconciliation of amounts at the end of a year,

(v) the order of the allowances or benefits from which the amounts are recovered, and

(vi) the imposition of interest;

(i) for the purposes of the definition “child” in subsection 2(1), providing for the meaning of the expression “full-time attendance at a school or university”;

(j) respecting, for the purposes of the definition “child” in subsection 2(1), the circumstances under which attendance at a school or university by a child of a member or former member shall be deemed to be substantially without interruption;

(k) prescribing, for the purposes of the definition “defined benefit limit” in subsection 2(1), an amount in respect of the 1995 calendar year and any subsequent calendar year, which amount may be prescribed by reference to the regulations made under the Income Tax Act;

(l) prescribing, for the purposes of subsections 9(3), 11(2), 31(3), and 33(2), the manner of determining a portion of the earnings limit of a member for a calendar year;

(m) prescribing the time within which a former memer may make an election under subsections 23(1) and 43(1) and prescribing the circumstances, and the terms and conditions, under which the election may be revoked;

(m.1) respecting the manner of adjusting aggregate amounts for the purposes of subsections 23(2) and 43(2) and respecting the manner of determining the amount of the joint and survivor benefit payable to a surviving spouse under subsections 23(4) and 43(4);

(m.2) respecting the evidence required to establish proof of age and marital status for the purposes of making an election under sections 23 and 43, the time within which the evidence must be provided and the consequences of any failure to provide the evidence within that time;

(n) prescribing anything that, by this Act, is to be prescribed; and

(o) for any other purpose deemed necessary to give effect to this Act.

Retroactive regulations

(2) Regulations made under subsection (1) may, if they so provide, be retroactive and have effect with respect to any period before they are made.

1992, c. 46, s. 81; 1995, c. 30, s. 25.

Valuation report

65. (1) In accordance with the Public Pensions Reporting Act, a cost certificate, a valuation report and an assets report relating to the Retiring Allowances Account shall be prepared, filed with the Minister designated under that Act and laid before Parliament.

Review date

(2) Notwithstanding subsection 3(3) of the Public Pensions Reporting Act, for the purposes of subsection (1), the review date as of which an actuarial review of the Retiring Allowances Account must be conducted for the purposes of the first valuation report completed after the coming into force of this subsection is March 31, 1995 instead of the date determined under subsection 3(3) of that Act, and thereafter the review dates must not be more than three years apart.

1992, c. 46, s. 81; 1995, c. 30, s. 26.

Valuation report

66. (1) A cost certificate, a valuation report and an assets report relating to the Compensation Arrangements Account shall be prepared, filed with the Minister and laid before Parliament in accordance with the Public Pensions Reporting Act as if the retirement compensation arrangements provided for by Parts II and III were pension plans established under an Act referred to in subsection 3(1) of that Act.

Review dates

(2) For the purposes of subsection (1), the review date as of which an actuarial review of the Compensation Arrangements Account must be conducted for the purposes of the first valuation report is March 31, 1995, and thereafter the review dates must not be more than three years apart.

1992, c. 46, s. 81; 1995, c. 30, s. 27.

Report to Parliament

67. The Minister shall, as soon as possible after the end of each fiscal year, lay before Parliament a report on the administration of this Act during the preceding fiscal year, including a statement of the amounts received by way of contributions and interest under this Act, the amounts paid under this Act by way of allowances or other benefits, the number of contributors, the number of persons receiving any allowance or other benefit, and such other information as is prescribed.